Jun 2018: IOI contacted BLD on the 12 June 2018 and requested they engage with the source of the clearance to seek their cooperation to immediately stop further works pending HCV and HCS assessments. IOI has also requested for actions to meet our policy gaps.
Jul 2018: BLD has responded in a formal letter and confirmed that the source has stopped further land clearance. They have explained the areas cleared are old logging land and now been earmarked for agriculture purposes. According to BLD, their Environmental Impact Assessment is in compliant with the State Government and its agencies requirements.
Aug 2018: BLD is now in the process of appointing a consultant to conduct HCV assessment and is reviewing various qualified parties to perform other assessments and gap analysis towards meeting NDPE requirements; and will update IOI upon finalization of the appointment and the commencement date of the assessments. Next follow-up on September 2018.
Sep 2018: During our recent meeting with BLD in September 2018, there were visible improvements sighted towards transformation to deliver sustainable palm oil.
However, according to BLD, there is a delay in the assessment and progress due to time and availability of the consultants. Because of this, BLD has failed to adhere to the datelines and unable to meet IOI’s policy requirement, which states clearly that IOI will not source from any supplier that does not abide by the NDPE policy. IOI have therefore imposed a moratorium on new contracts.
IOI will continue to closely monitor BLD current and future sustainability progress as they have put in place plans to manage their conservation areas; systems to enhance welfare and benefits for their workers and local communities; and to develop a traceable supply chain.
We will continue to engage and encourage BLD to meet our policy commitments and for the adoption of a NDPE policy to support their transformation journey.
Jan 2019: Two field visits in December 2018 completed. The management provided us with full cooperation during the visits; and assessments on environmental, social, safety and legal aspect were reviewed for compliance. BLD have commenced reviewing and enhancement of existing action plans to address gaps and weaknesses and have agreed to take steps and measures towards improvement with immediate effect.
BLD have also prepared a sustainability policy and is currently in the process of sharing and socializing it to stakeholders for their review and feedback.
IOI continue to work closely with BLD and our next engagement is scheduled for February and we hope to provide further support to drive change and progress.
Mar 19: BLD management team have briefed their workers on travel documents storage. And the workers are now holding and keeping their own passports.
May 2019 : BLD has finalised their NDPE policy and is circulating it with key stakeholders for comments.
Key updates on action plan progress - BLD have completed safety and sustainability briefing to their stakeholders which include their workers and FFB suppliers. They have also reviewed and strengthened their water management plan for peat areas and added additional piezometers and subsidence pole.
May 2019: BLD has been working with Earthworm Foundation (EF) and has published their Sustainable Palm Oil Policy with NDPE commitments.
EF is the advisory consultant and is supporting BLD in the crafting of a road map for the delivery and implementation of this policy and a grievance mechanism/procedure to address issues from both internal and external stakeholders.
BLD has announced a moratorium on all future new development until the finalisation of their policy implementation plan. And there will be no development of peatlands regardless of depth and HCS and HCV assessment will be conducted for all future developments.
Jul 2019: BLD, with the assistance of Earthworm Foundation, is making satisfactory transformation progress. In accordance to their commitments, they have prepared their NDPE policy implementation plan which includes a grievance mechanism and publishing of supplier mill list. The policy implementation plan details set time bound objectives and milestones. We are placing BLD into monitoring and will continue to engage and provide support.
Aug 2020: Due to the Movement Control order by the government to curb the spread of covid19, we have not been able to conduct site engagements nor received progress updates. As such, we have stopped new contracts from BLD.
Feb 2021: BLD have enhanced their transparency and have made available traceability and sustainability progress information to all stakeholders here.
There has been several zoom meetings and discussions where BLD has given us further commitment to progressively work on their NDPE implementation plans and to provide regular updates. Where appropriate, BLD will engage with consultants and experts for continual improvement to meet industry requirements.
We will continue to support an engage BLD on all NDPE issues.